Sarbottam Cement Limited Issuing IPO Shares to Industry-affected Locals and Nepalese Employed Abroad From Today

Sarbottam Cement Limited is opening the issue of an Initial Public Offering (IPO) to the industry-affected locals of Nawalparasi District/mine excavation-affected locals of Palpa District and Foreign Nepalese Immigrants from today i.e. on 25th Poush to 10th Magh, 2080.

Note that for the industry-affected locals of Nawalparasi District/mine excavation-affected locals of Palpa District, if the issue is not subscribed by the early closing date, the issue can be extended till Magh 25. However, the issue will not be extended from the early closing date for Foreign Nepalese Immigrants.

Earlier, as per the guidelines, the cement company had issued its primary shares through the book-building process to the Qualified Institutional Investors (QII) from 6th - 10th Mangsir, 2080. The allotment of which happened on 11th Mangsir. A total of 41 eligible institutional investors had applied for 36,19,190 unit shares against 24 Lakh units initially offered to them.

In total Sarbottam Cement is to issue 12.9033% of its issued capital of Rs 4.65 Arba, i.e. a total of 60 lakh shares equal to 60 crore. Out of which 40% i.e. 24 lakh shares were already issued and allotted to the Qualified Institutional Investors (QIIs), while the remaining 60% i.e. 36 lakh shares are for the general public.

From the total of 36 lakh units, 9,30,000 unit shares will be issued to industry-affected locals of Nawalparasi District/mine excavation-affected locals of Palpa district. The remaining 26,70,000 units; of this public issue, 10% of the shares totaling 2,67,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which will open today. Later on, the remaining 24,03,000 units will be issued to the general public.

Global IME Capital has been appointed as the issue manager. Applications can be placed for a minimum of 50 units while the maximum quantity is 10,000.

The share price of the company is Rs. 360.90 per share for common investors. The company is issuing an IPO through the book-building method.

In general the 'cut-off price' serves as a pivotal factor in the IPO issued under the book-building process. During the primary shares allotment to the qualified institutional investors, the 'cutoff price' for Sarbottam Cement was set at Rs 401. Following the guidelines, shares are made available to the general public at a reduced rate, specifically 10% lower than the 'cut-off' price. For Sarbottam Cement, this translates to Rs 360.90 per share for common investors.

ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BBB+ (pronounced ICRA NP issuer rating triple B plus) to Sarbottam Cement Limited. ICRA Nepal has also reaffirmed the long-term rating of [ICRANP] LBBB+ (pronounced ICRA NP L triple B plus) and the short-term rating of [ICRANP] A2 (pronounced ICRA NP A two) to Sarbottam’s bank loan limits.